Turkey to force exporters to convert 40% of income to lira

Turkey’s Central Bank shared a plan to increase the rate at which exporters must convert their hard currency revenue into lira to 40 per cent, from 25 per cent, to tackle high inflation in the country, Bloomberg reports.

The Governor of the Central Bank, Sahap Kavcioglu, discussed the plan with members of the Turkish Exporters Assembly yesterday. The proposal still requires Treasury and Finance Ministry approval.

Last January, Turkey ruled that exporters must convert a quarter of their hard currency revenue into lira at the central bank.

Last month, Turkey also warned  the banks not to provide lira liquidity to companies looking to speculate in the offshore money market.

The lira weakened 8.8 per cent against the dollar this year.

READ: Turkish lira plummets to new low after central bank slashes rates